Teleclass Special

Teleclass Special

When the Pros Fail Homeowners

When the Pros Fail Homeowners

When a homeowner is fighting foreclosure there are several things that they attempt to do before seeking out a real estate investing professional.  Typically when a homeowner is delinquent on their mortgage they in some cases, but not always, will seek out the help of a family member.  In other words, try and borrow some money to attempt to reinstate their loan.

When that fails the next thing they do is reach out to a mortgage lender, and what they’re looking for is to maybe get the loan officer to assist them by refinancing their property and to end the foreclosure.

Well, how does this work?  Typically a homeowner is going to reach out to a mortgage broker, a loan officer and say I’d like to refinance my house.  And once the mortgage broker is able to look at their credit and discover that the homeowner is several payments delinquent and there is no loan program available to them they simply say, there’s nothing I can do for you.  I’m sorry.

The next logical step would be to reach out to a realtor because they will in some cases come to the realization that they must sell in order to avoid being foreclosed on.

So when they reach out to that realtor and say will you place my house for sale, in some cases they may not necessarily tell the realtor they are facing foreclosure but in some cases they do.  The realtor is going to quickly discover this person has a $205,000.00 loan balance on a house that’s worth $200,000.  Now if you do the math, it’s a little difficult to sell a $200,000 house for $205,000.

It’s as though you found a car for sale that the salesman says, “well, the car is worth $20,000.00, but I’m asking $25,000.00 for the car.  I don’t think people would be willing to pay that.  Not only that, there’s no commission available for the realtor to get if they were to list that property.  There just simply isn’t any room available for them to receive a commission.

So is there an incentive here for the realtor to want to help the homeowner?  Well, the answer is no, although some realtors will do so out of the kindness of their heart.  Finding a true buyer for the property is pretty remote at best.

Here’s how you capitalize on the mortgage lenders and realtors’ inability to help.  You simply network with realtors, loan officers and mortgage brokers.  By doing this, you will help those homeowners they were unable to help.

Your motto: Take a loan officer or realtor to lunch once a week!

Tell them what you do.  I often use a thirty second elevator speech when I begin to explain what I do. It promotes questions.

There are many strategies to making money in real estate, but nothing make sense unless you have the RIGHT strategy.  Buying foreclosures is the most profitable way to make money in real estate.  When you build the right system for finding, buying and selling foreclosures with none of your own cash or credit, you control your future.  Discover how to use risk-free techniques to turn a part-time business into a cash gushing part-time business.  Sign up right now for Mark Sumpter’s FREE report and FREE videos to find out how to do exactly that - Go here:www.getshortsaletraining.com

Do The Right Thing

During the last several weeks, the national news programs have be flooded with stories of homeowners facing foreclosure.  Sally and Sam Homeowner has had their face plastered all over the news, with pouting lips, long faces, seeking sympathy for the problem.
While some homeowners are really suffering legitimate hardships and bad luck that’s forced them into foreclosures, there are homeowners who are in foreclosure for reasons that are simply their fault.

They didn’t read the fine print.  As a result, the government, in their infinite wisdom has began chattering, whispering and talking out loud about helping homeowner avoid foreclosure by bailing them out.  This bailout consist of the government making payments on behalf of the homeowner.  Exactly what does that mean.  Who qualifies for government help?  Is the government only going to help homeowners with sub prime loans or will those of us with conventional loans qualify for assistance.

Are you going the help the homeowner who suffered a real hardship with their payments and when do you stop?

Does the homeowner, who didn’t read the fine print and their ARM goes from $1400 a month to $2300 a month qualify?  If the government is going to help that person, when will the homeowner be responsible for the payments again.  How long will the government help them.  Do they qualify for 30 years of assistance from the government?  I hope not!

Do you help the homeowner, who elects to not make payments because he/she bought a new car and the payments on the Cadillac are more important?  Do you help the homeowner, who decided to build a bigger and better house to move into without selling the other house first?

Along with long faces of homeowners facing foreclosure are the many stories of investors ripping them off.
Mortgage rescue services are cropping up all over the country, taking advantage of homeowners .  Here’s how they work:
The homeowner falls behind in their payments and when the official “Notice of Default” or the “Notice of Trustee Sale” is recorded and made public record, these scammers began marketing to homeowners with the promise they will “guarantee” to stop their foreclosure.

Once the homeowner calls, the scammer shows up and again “guarantees” to stop the foreclosure by working with the lender.
Unfortunately, there is a cost.  Usually the scammers charges anywhere between $500-$2000.  The scammer collects the fee upfront, has the homeowner sign several documents and off into the sunset the scammer goes leaving the homeowner, the kids, and scruffy waiving good-bye the lone-scammer-ranger as he rides off $2000 richer.

What’s sad is the homeowner has no idea the scammers’ true intent is to never attempt the contact the lender.

Several weeks into the foreclosure, the homeowner hasn’t heard a word from the mortgage rescue company and they began calling.  After several attempts, without success, the homeowner starts calling the lender, checking on the status of their foreclosure.

The lender informs the homeowner there foreclosure is still scheduled for sale.  Now in the 11th hour, they began screaming foul; and they should.

How to fire a homeowner

You know, often times on working with homeowners who are facing foreclosure, they typically have a variety of attitudes when working with you.

Now first there’s the legitimate homeowner who really truly needs your help, in other words, they’re facing foreclosure, they have some legitimate hardships, and they really truly want you to help them solve their problem.  Then there’s the homeowner who is extremely slow in getting documents to you.  In other words, while there was a need for your services and they felt the desire to give you a call, they’re not acting swiftly enough to get you the documents that you need in order to help them solve their problems, and often times this will leave an investor frustrated with the homeowner.  Thus, ultimately not getting the deal and landing the house on the courthouse steps.

Okay, then there’s the “here’s how we’re going to do it” homeowner.  In other words, this is the homeowner who already has their problems figured out.  All they need is someone who’s savvy enough (stupid enough) to do it their way.  In other words, when you are talking to them over the phone the first thing they say is, “Well, I’ve got this cousin, or my brother, once you’re able to negotiate a short sell, is going to buy the house directly from you and in doing so I want you to get a discount of this ‘X’ number of dollars and then sell it for ‘X’ and I want half the profits.”

Then there is the investor and oftentimes you’ll get this, when you’re working with investors, and that is the investor who says, “Here’s exactly how you’re going to do this transaction because I know what short sells are about, I know how they work, I’ve done some myself; however, this is what you’re going to do in order to solve my problem for me.”

When you run across folks like that, when you run into homeowners and investors who are going to dictate the terms of how you are going to help solve their problem, simply fire them.  One of the things I’ve quickly come to discover in this business is that you do not need the homeowner; the homeowner needs you and if they already have the solution to their problem, then why are they calling.

So when you get a homeowner who is trying to dictate the terms of the negotiation, then you simply need to walk away.  Remember this, a homeowner who is a pain in the ass today, is going to be a pain in the ass 30 days from now and will be an even bigger pain in the ass 90 days from now.  So simply never take on a client because you need to.

Only take on a client because you choose to.